The new mutual fund may help smooth out the overall risk and improve diversification because of the addition of alternative asset classes to a portfolio.
The PL Diversified Alternatives Fund provides a simplified approach to alternatives investing through a fund-of-funds structure, investing in a variety of other mutual funds of Pacific Life Funds ("Underlying Funds") considered to be alternative or nontraditional investment strategies. Each Underlying Fund represents a distinct investment strategy with varying degrees of volatility and return potential depending on market conditions. Among the variety of asset classes, the Fund may invest in currency, emerging-markets debt, emerging-markets equity, floating-rate loans, global absolute return, inflation-managed bonds, precious metals, and real estate.
"In terms of investment philosophy, several factors set this Fund apart," says Chris van Mierlo, chief marketing officer and senior vice president of sales for Pacific Life’s Retirement Solutions Division. "The Fund provides low correlation with the broad markets. Our fund managers focus on a disciplined balance between correlation and performance, all while keeping a close eye on fund volatility. Rather than making short-term, tactical calls on alternatives market segments, all major decisions will be made with a long-term perspective in mind."
Pacific Life Fund Advisors is the fund manager of the PL Diversified Alternatives Fund. The portfolio managers include Howard T. Hirakawa, CFA, Carleton J. Muench, CFA, and Samuel S. Park. The investment management team consists of highly disciplined professionals with more than 48 years of combined experience managing fund-of-funds strategies. Their expertise allows them to make all decisions regarding the Fund’s allocations, investment-risk management, and the selection of managers for each Underlying Fund.
